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Large Domestic Capitals Continued to Enter Fruit New Retail

China Agriculture Report By CnAgri2018-03-09 15:04:40China Agriculture Report Print
The year 2017 was the first year of the new retail. The new e-commerce giants such as Ali, JD.com, Tencent, Yonghui Superstore, Amazon, Meituan.com, Suning all entered the new retail. The reasons are mainly the following:
a. Consumption upgrading and technology reforms are the roots of the boomed new retail. On the one hand, the new technology developed business opportunities for the traditional retail and explored new models; on the other hand, consumers’ demands for shopping experience upgrading and scene localization. This also made mighty e-commerce enterprises re-examine and explore the on-line and off-line combination.
b. New retail can drop the cost sharply. On the one hand, it can significantly reduce channel operators’ operating costs; on the other hand, the low cost and high efficiency would also promote the network density. Logistic centers and business networks would be removed and the production - distribution - sales would tend to fuse (or the supply chain would tend to fuse). The minimum loss "commodity to consumer" route would be achieved.
c. At present, as the e-commerce’ bonuses are getting less and less, the cost for winning customers offline is cheaper; there is also a lot of room for improvement in the offline stores. Therefore, the on-line and off-line also continued to mix together. During the fusion, a company could conduct data management on the off-line shops. For example, HemaXiansheng could estimate how many oranges each shop could sell at each time point during the orange market period.
Although the new retail is in the cutting-edge, the new retail is upgrading on the traditional retail not redoing it. The key of the development is to get the on-line and off-line sales through. Let the off-line sales take good advantage of the big data and new technology and let the on-line sales take good advantage of the supply chain and the physical store coverage and promote the retail from pure commodities to multiple interactions.
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